Voda Idea holds EGM to seek shareholders' nod to raise Rs 20,000 crore

New Delhi: Troubled telecom operator Vodafone Idea on Tuesday said it has held an extraordinary general meeting to seek shareholders' approval to raise up to Rs 20,000 crore by issuing securities.

VIL, in a statutory filing, said that the results of the voting will be intimated, separately.

"An Extra-ordinary General Meeting of Vodafone Idea Limited was held today, that is, Tuesday, April 2, 2024, at 3.00 p.m. through Video Conferencing (VC) / Other Audio Visual Means (OAVM) in accordance with the relevant circulars issued by the Ministry of Corporate Affairs and Securities and Exchange Board of India," Vodafone Idea (VIL) said in a BSE filing.

The agenda listed in the extraordinary general meeting (EGM) pertained to "issuance of securities up to an aggregate amount of Rs 20,000 crore".

It is pertinent to mention that in February this year, the struggling telecom operator had said its board had approved raising up to Rs 20,000 crore in equity from promoters and other investors by June, as it looked to shore up finances for much-delayed 5G rollout and strengthening 4G services.

The debt-laden firm, where the government also holds just over 33 per cent equity stake, plans to raise Rs 45,000 crore through a mix of equity and debt with hopes of matching services offered by rivals Jio and Bharti Airtel that could arrest subscriber churn.

The fundraising will also arm Vodafone Idea with firepower to improve competitive positioning in the Indian telecom market, where it trails larger rivals Reliance Jio and Bharti Airtel, by a wide margin.

Vodafone Idea has been fighting a desperate battle for survival -- it has a debt of Rs 2.1 lakh crore, is reporting quarterly losses, and is haemorrhaging subscribers month after month.

Trai data showed that Vodafone Idea continued to bleed on the subscriber front.

VIL lost 15.2 lakh wireless subscribers, and its mobile subscriber base stood at 22.15 crore in January, its operational metrics a sharp contrast to subscriber gains by Jio and Airtel.